Capitalism and Socialism and Democracy, Oh My!
Part One: The Illusion of “Life, Liberty, and the Pursuit of Happiness”
Ahh, America: the cornerstone of democracy, the pinnacle of moral principle, and the leader of the free world— right? Afterall, American values of life, liberty, and the pursuit of happiness exist as confetti sprinkled around our society; from our currency to our national landmarks, and folded neatly into the droning monologues of our politicians.
“Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!”
That is one hell of an inspiring sonnet, a testament to the idealized soul of the United States, something that Emma Lazarus believed in. It is an idea that many Americas believe and hold today.
And we know it to be true! We have learned these founding principles in school, we see them reflected in our media, and we strive to embody them in our lives. Our society is flourishing, and we are told other parts of the world struggle to keep our superior pace.
When someone has something special, there are evils in the world which seek to destroy it. They want what is ours; our way of life, all that which we have achieved so virtuously through hard work and sacrifice—these scoundrels do not want to put in the effort themselves and their leaders are ineffective. They’d rather take it from someone else, from us, and we cannot allow it!
But that is a huge fucking lie. This is a carefully constructed narrative, forged over decades of American Imperialism abroad and a vicious, often covert, U.S. foreign policy. This idealized rhetoric that I was taught in school, at home over dinner, and within my local community—in my church and at Friday night football games— is a comforting thought. It reinforces a sense of national exceptionalism, but truthfully does nothing for citizens of the United States, nor does it make us adored by other nations.
It is an idea that I wish I could still believe were true, but the fact of the matter is; there is a different story to be told about the United States, one the rest of the world knows, at least in part. Understanding that story can help us dissect this comforting lie, and why it was constructed by powerful interests within our country. It is a lie that not only harms us, but perpetuates that harm on a global scale.
It’s a story of American Imperialism, the weaponization of foreign policy to extract and exploit resources from foreign shores, subjugating entire nations to provide us with abundant resources through unfair exchange, and preventing them from ever achieving a comparable level of prosperity or participating in it themselves.
This idealized image of America, the one we are taught, conveniently ignores the historical and ongoing exploitation of other nations and our own working classes. It fuels our own misconceptions about the world and shapes others’ perceptions of us as a nation.
Let's back it up.
Part Two: The Myth of American Origins
The United States is founded on the principle of Democracy. From the Greek words dêmos (common people) and krátos (power), it describes a system of governance where the power in decision-making is vested in the populace of the state.
Most of us know this definition, we start learning about this stuff as early as 4th grade. This concept of Democracy lays the basis for our belief system, in personal liberties and the pursuit of happiness. And how is this achieved? Through our economic system of Capitalism, a valuable tool in that it allows for personal economic motivation through their ability to own private property, and also to earn and expend capital.
As for systems of governance, what I can say is that Democracy, while imperfect, remains the best system we’ve developed to assure that eligible citizens are represented through the electoral process. However, from its inception, the definition of 'eligible citizen' has been limited. Today that is a less pervasive issue in the U.S., but we have another issue with representation. What happens after our elected officials take office? Are we truly represented?
According to the heavily cited study “Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens” by Martin Gilens of Princeton University and Benjamin Page of Northwestern University, the influence of average citizens on policy appears to be near-zero, or “statistically insignificant.” Their 2014 research, which analyzed 1,779 policy issues, suggests that while public opinion may play a minor role, particularly when aligned with elite preferences, when the preferences of average citizens and economic elites diverge, elite preferences are substantially more likely to be reflected in actual policy outcomes. For example, tax policies often favor corporations and wealthy individuals, despite public opposition.
Wait— WHAT!? When did this happen?!
What if I told you, it has always been like this? What if I told you the settling of the United States was not solely for some puritanical religious movement that hailed religious freedom for all and the principle of freedom as a basic human right?
In reality, the first two colonies that would eventually become the United States were corporations. The Virginia Company and the Massachusetts Bay Company were joint-stock companies formed in England for the sole purpose of resource extraction and wealth accumulation for the elite aristocracy. There was no American Dream; there was no intention to establish permanent colonies for the sake of building a just society. These companies operated to maximize profit, often at the expense of the indigenous populations and indentured servants.
Those are our true foundations, and they have continued uninhibited until this day. One could even view the American Revolution as a worker’s rebellion, albeit one that ultimately transferred power and exploitation into the hands of wealthy landowners, many of whom owned slaves. George Washington, like many of the Founding Fathers, was a wealthy landowner and slave owner, a testament to the 'self-evident truths' that applied unevenly.
This legacy can be seen in the slaving owning plantations of The South, The Homestead Strike of 1892, The Ludlow Massacre (1914), The Bonus Army Massacre (1932). These events illustrate the ongoing struggle between the working class and the elite, a struggle that continues to shape American society.
We could continue this story going decade by decade, but that is not why I am writing this blog post. I am writing to critically examine how this history has affected modern society. Without knowing our true history, how can we understand the way in which monolithic corporations and their uber-rich plutocrats came to power and the means by which they exert influence within our government?
Part Three: The Early Inspirations and a New Evil
The historical foundation for plutocratic elite rule in the United States was laid in a series of key interventions between 1893 and 1912, aimed at protecting wealthy U.S. businessmen’s investments in foreign territories.
Hawaii (1893) - U.S. Businessmen, led by Sanford Dole (Yes, that Dole), with the support of the United States, annexed the Kingdom of Hawaii, and overthrew Queen Lili’uokalani to subjugate the population and force them to work on American-owned sugar plantations. Dole was then installed as the Governor of Hawaii
Panama (1908) and Nicaragua (1912) - The United States backed Panama’s secession from Colombia to secure sovereignty over the Canal Zone for U.S. business interests. A few years later, the U.S. invaded Nicaragua to overthrow José Santos Zelaya, ostensibly to defend the Canal Zone and prevent the nationalization of Nicaraguan natural resources, which the U.S. sought to exploit.
These early violent interventions to meddle in foreign affairs and annex sovereign nations to secure the business interests of white American elites set the precedent for more covert operations. The U.S. government often misled the American people, using taxpayer money to fund interventions aimed at seizing resources from nations attempting to nationalize them.
The Great Depression, triggered by the stock market crash of 1929, was partially alleviated by the Socialistic policies of President Franklin D. Roosevelt’s New Deal. These policies helped lift Americans out of poverty caused by unfettered Capitalism and market speculation
The United States’ entry into World War II further stimulated the economy. Despite initial isolationist sentiments, the U.S. was drawn into the conflict. While the narrative of the U.S. as a noble defender against fascism is prevalent, it is important to acknowledge that prior to the war, U.S. policy was not overtly opposed to fascist regimes. The war, however, provided a significant economic boost, leading to increased employment and prosperity for both the working and capitalist classes, albeit under stricter regulations following the 1929 crash.
After the war, those camps scattered across Europe were liberated, solidifying the U.S. as a champion of freedom. The atrocities committed by Nazi Germany made overt support for fascism untenable.
Simultaneously, the United States emerged as a global superpower, alongside the USSR. The ideological conflict between Capitalism and Communism became a central feature of the Cold War. The U.S. had spent decades suppressing socialist movements (Communism’s little brother) to protect resource extraction, and was now faced by a powerful communist adversary.
While U.S. policies did bring benefits to the American people, they were often achieved through the exploitation of foreign labor and resources. The deaths of thousands working on plantations and fighting in rebellions were a direct consequence of these policies.
All that for cheap bananas and sugar? And it was just getting started. The United States, with its extensive interests in Central and South America, and its newly acquired territories, viewed the rise of socialist movements as a threat to its economic and political dominance. The desire of these nations to nationalize their resources and improve living standards was met with U.S. opposition.
“Not gonna happen.” says America.
Part 4: Coo-Coo for Coup d'états
World War II lead to the concept of 'national security' and the establishment of intelligence agencies like the National Security Council and the Central Intelligence Agency. These institutions were created to protect U.S. interests abroad, often through covert means.
These actions by the United States in the early 20th Century, well, they sort of looked like.. fascism? Or at least like warmongering dictatorial power exercising indiscriminate control over foreign nations. To justify these actions, the new concept of 'national security' was invoked, framing socialist movements as a threat to American interests. This allowed the U.S. to support authoritarian regimes under the guise of combating communism.
Let’s dig in.
Guatemala (1954) – The CIA and State Department, influenced by the Dulles brothers, overthrew democratically elected President Jacobo Árbenz in the interests of American investments in United Fruit Company (now Chiquita). Árbenz’s land reforms threatened corporate profits. The entire country, much like the Kingdom of Hawaii, was subjugated and forced into a system producing a single product for the benefit of the United States. This is where the term “Banana Republic” originated.
Iran (1953) – in 1953, the U.S. (CIA) and Britain (MI6) conspired and overthrew Prime Minister Mohammad Mossadegh who, before his ousting, had implemented land reforms, higher taxes for the wealthy, and social security measures. The U.S. intervened to prevent Iran from nationalizing its own oil reserves. This was done to secure control control for Anglo-Persian Oil (now BP). Mosaddegh, in front of the United Nations Security Council stated on 15 October, 1951, that "the petroleum industry has contributed nothing to well-being of the people or to the technological progress or industrial development of my country."
Cuba (1952-1959, Failed 1961) – The U.S. initially supported Fulgencio Batista, who protected U.S. corporate interests. After Fidel Castro led a successful revolution against Batista in 1959, the U.S. attempted to remove him through the failed Bay of Pigs invasion (1961) and later through economic warfare, assassination attempts, and embargoes that caused chaos and crippled the country economically. This issue drove Cubans into the arms of Soviets for financial assistance and created the context for The Cuban Missile Crisis (1962).
Brazil (1964) – President Lyndon B. Johnson authorized measures for the United States to “Take every step-” to support opposition of the democratically elected left-wing President João Goulart. Through Operation Brother Sam, the U.S. installed a right-wing military dictatorship that aligned with American corporate interests. This directly resulted in a CIA backed state terror campaign known as Operation Condor that installed dictatorships all over South America.
Having lived in Brazil this stuck with me. The following article is a heavy read, so view it at your own risk. These are the students, teachers, lawyers, activists, and other citizens murdered with U.S. Support during the Brazilian Dictatorship.
Chile (1973) – The CIA backed the overthrow of socialist President Salvador Allende, replacing him with dictator Augusto Pinochet, who implemented neoliberal policies that were meant to directly benefit U.S. corporations like ITT and Anaconda Copper. Pinochet’s regime was marked by terror. 30,000 tortured, 3,000 killed, 200,000 exiled or institutionalized.
Argentina (1976) – During the Dirty War, the U.S. supported the brutal dictatorship of Jorge Videla, killing tens of thousands of dissidents while enforcing pro-business policies. Who benefited from this regime? Western Banks, the IMF, Ford, Exxon, Citibank.
This is not at all a comprehensive list, this has happened time, and time, and time again.
Part Five: What Does It All Mean?
For over a century, U.S. investments have dictated global politics, not through diplomacy or democracy, in fact many of the regimes they overthrew were democratically elected. Therefore we can reason that Democracy is clearly not as important to us, or at least to the United States government, as we claim. And this use of brute force, economic coercion, and propaganda to subjugate entire populations raises questions about the merits of unfettered capitalism.
Today, the legacy of these interventions persists. Nations that were destabilized by U.S. policies are often portrayed as inherently unstable, justifying further intervention. These nations, once exploited as 'banana republics' or 'oil republics,' are now seen as sources of instability in regions like the Middle East and South America. Instability that we must intervene in and extract resources from while we do.
The abundance enjoyed by the U.S. is not solely the result of merit or talent, but also the product of a system of exploitation meant to keep these countries in turmoil and easily exploitable. The leaders of the U.S. have often prioritized self-interest over global well-being, using both foreign nations and domestic populations as tools.
If you are content with this system because it provides you with cheap goods, then this blog is not for you. Go be a monkey-brain elsewhere. This blog is for those who recognize the domestic implications of these policies. The elites who have exploited the world are now turning their attention to the U.S., using populist rhetoric to undermine democratic institutions.
They seek to replicate the tactics used abroad, suppressing the working class and restricting immigration. They need a domestic base to support their power. While we consume the fruits of their exploitation they will eject the tired and poor huddle masses back to foreign shores and block others from coming here. They view labor as a commodity, whether it is located overseas or within the United States, they don’t need these laborers within U.S. borders to exploit them.
That “Golden door” is stained with blood, and its light is fading. If we want to be the idealized America we claim to be, then we must fight for it, and remove these elites from power who have subjugated the world and sold us out for a Chiquita banana. Go out into the world and share ideas that fight these people. Protest if you are able. Strike and boycott if you can. Hold them and their supporters accountable. It is time to depose these unelected corporate plutocrats that have hijacked our nation.
